Timothy's Law and Mental Health Parity

Timothy's Law refers to legislation being considered in New York State that would provide mental health parity beyond what is provided by the Federal Mental Health Parity Act.

Timothy's Law would require that insurance providers covering healthcare provide coverage for mental health and substance abuse services that is on par with other healthcare coverage provided by the policy.

Currently, in spite of the federal law, private insurance typically limits the amount of coverage provided for mental health and substance abuse treatment, or requires additional co-payments.

Supporters of Timothy's Law argue that:

• Lack of parity is discriminatory
• Lack of parity is dangerous
• Parity would help keep families together
• Parity is cost effective

About Timothy's Law

Timothy's Law is named for Timothy O'Clair, a 12-year-old who hanged himself after his family spent nearly five years seeking treatment for his emotional disorder.

His parents sought help for their son for six years, and believe he would be alive today if insurance covered mental health and substance abuse the same way it covers medical illnesses.

The Cost of Timothy's Law

Supporters of Timothy's Law cite a 2002 report by PricewaterhouseCoopers showing that, based on a study of similar legislation in 34 other states, Timothy's Law would cost only $1.26 per insured person each month to implement.

They also argue, though, that Timothy's Law could save more than it costs.

Because of the way existing regulations are written, many parents, including the parents of Timothy O'Clair, give up custody of their children so they can qualify for full mental health coverage through Medicaid. Such coverage costs hundreds of thousands of dollars a year, because it also includes the costs of housing, education and other living expenses. Supporters of Timothy's Law say it would cost less to keep children with their parents.

Supporters of Timothy's Law also argue that mental illness costs billions of dollars a year in lost productivity, and that treating it would help both those with mental illness and their families to be more productive. The Journal of the American Medical Association estimates that depression alone costs more than $44 billion in lost productivity.

Enactment of Timothy's Law, supporters say, would help remove the stigma associated with mental illness, and would better enable those with mental illness and their families to live full and productive lives.

Click here for a recent article on mental health parity.